What Are Scarce Resources? Why Are Economic Agents Concerned with the Allocation

question 81

Essay

What are scarce resources? Why are economic agents concerned with the allocation of these resources?

---

Definitions:

Pretax Return

The earnings of a company before taxes have been deducted.

Working Capital

The gap between what a business owns in current assets and owes in current liabilities, showing the available liquidity to cover daily operational costs.

Salvage Value

The anticipated amount an asset is expected to sell for once it reaches the end of its life span.

Pretax Return

The income or profit earned by a business before the deduction of tax.